Iran Conflict Lifts Oil Prices, Adds to Inflation Concerns Ahead of Fed Rate Decision

US stocks opened lower on Monday as renewed military clashes between the US and Iran pushed oil prices higher and added to concerns about inflation. The developments also increased uncertainty around the Federal Reserve's interest-rate path ahead of its September meeting.

The Dow Jones Industrial Average fell 346 points, while the S&P 500 was almost unchanged and the Nasdaq Composite declined 0.52%. Energy stocks benefited from the move in crude prices, with Halliburton and Valero Energy rising 3.04% and 1.84%, respectively.

The renewed hostilities sent oil prices higher, with West Texas Intermediate crude trading more than 3% higher at above $86 a barrel, while Brent crude futures rose more than 3% to above $91 a barrel.